OCTOBER 31, 2011

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Retail/Shopping/Commerce
Brand Loyalty Declines Amongst Tech-Embracing Consumers
A new report from Forrester suggests that consumers’ loyalty to consumer electronics brands is on the decline-- the higher the affinity towards tech products, the lower the brand loyalty. According to Forrester, the main driver is the pace of development around different devices and products. This phenomenon is creating unease amongst tech marketers.
So what? Since brand-loyal consumers have the most lifetime value, consumer electronics brands need to develop strategies to combat this trend. CN offers a great contextual branding environment that is quite different from the online exchange/real time bidding market where an impression’s value is only measured in cost.
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Media
Calculating Engagement: A New Approach
In a new white paper, IPSOS claims to have definitively solved the question of how to measure engagement. The paper warrants attention because IPSOS was able to validate their approach by correlating (IPSOS created) engagement scores with standard brand tracking metrics such as satisfaction and trust. The unique approach acknowledges that there are different types of engagement-- brand, social and physical. Brand engagement centers around perception, quality and need fulfillment. Physical is measured through time spent per page. Social revolves around the number of people involved with the brand's social media as well as the level of interaction.
So what? While CN enjoys high brand engagement, there hasn’t been much work done to understand our physical and social engagement. The industry still needs fresh thinking about how we understand and value our properties. Tools such as ‘social heat’, which is outlined in this paper, may prove useful.
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Consumer Preferences for Video Consumption
Nielsen data have shown people are spending more time than ever watching video and much of the growth is coming from 2nd and 3rd screens. A recent Price Waterhouse Cooper study dives deep into consumer’s preferences and habits around video consumption. Some key findings include: Consumers prefer to rent over purchasing, want instant access and are averse to purchasing video content through social networks.
So what? This study suggests that the Netflix pricing model will remain highly popular with consumers. This model deserves testing with magazine publishers as well.
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Search Behavior and Ad Receptivity
A recent study by About.com (a question and answer content site) and Latitude (a research vendor)attempts to draw the link between mindset and advertising engagement. The study finds that consumers use search to satisfy one of three main goals – to answer a question, to be inspired or to be educated about a specific topic. When advertising on a landing page matches back to the original search activity and consumer mindset, the advertising creates a greater impact.
So what? A stronger content-based targeting system should be implemented across our sites. Matching the content (and by extension mindset) with the advertising could create greater ad impact across the sites. A direct match between search keyword and ad served may be impossible due to Google’s new privacy restrictions but content-based targeting could help create the engagement levels that About and Latitude found in the study.
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Quick Takes
World Population To Hit 7 Billion Today!!
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80/20 Rule and Video Streaming
Majority of Video Streaming is done by a small group of heavy users.
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Condé Nast
Feedback, questions, ideas for future issues? Please contact:

Phil Paparella
Condé Nast Research & Insights | Associate Director
1166 6th Avenue, 14th fl. | NY, NY 10036 | office 212.790.6044 | philip_paparella@condenast.com

Contributors:
Tamar Rimmon | Senior Manager, Digital Analytics
Robyn Hightower | Manager, Research & Insights